RHIM - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 2.6

📊 Based on the given parameters, RHIM is a weak candidate for swing trading at present. The stock trades at a high P/E (52.3 vs industry 39.0) despite declining quarterly profits (-15.4%). Technical indicators (RSI 37.8, MACD -7.55) suggest bearish momentum. While debt levels are very low (0.02), profitability metrics (ROE 5.62%, ROCE 7.71%) remain modest, limiting upside potential.

💡 Optimal Entry Price: Around 430–440 ₹ (closer to support zone).

🚪 Exit Strategy: If already holding, consider exiting near 470–480 ₹ resistance or on breakdown below 430 ₹.

✅ Positive

• 📉 Very low debt-to-equity ratio (0.02), strong balance sheet
• 📊 EPS at 8.74 ₹, providing valuation support
• 📈 FII holdings stable (+0.01%)

⚠️ Limitation

• 📉 High P/E ratio (52.3 vs industry 39.0)
• 📊 Weak ROE (5.62%) and ROCE (7.71%)
• 📉 RSI near oversold zone (37.8), bearish sentiment
• 📊 PEG ratio negative (-8.99), poor growth-adjusted valuation

🚨 Company Negative News

• 📉 Quarterly PAT declined (41.3 Cr vs 46.5 Cr)
• 📊 DII holdings decreased (-0.15%)

🌟 Company Positive News

• 📈 Strong balance sheet with negligible debt
• 📊 Stable FII interest (+0.01%)

🏭 Industry

• 📊 Industry PE at 39.0, lower than RHIM’s valuation
• 📈 Refractories sector tied to steel and infrastructure demand

📌 Conclusion

RHIM is not an attractive swing trade candidate currently due to overvaluation, declining profits, and bearish technical signals. Entry near 430–440 ₹ may offer limited upside, while exits should be targeted near 470–480 ₹. Risk management is essential given weak momentum and modest profitability.

I can also prepare a comparison of RHIM with another refractories or steel-linked stock to highlight relative swing trade opportunities.